Please Refer to the Equity Section of the Balance Sheet

question 26

Multiple Choice

Please refer to the equity section of the balance sheet, below:
$\begin{array}{|l|l|}\hline\text { Preferred stock, } \$ 50 \text { par, } 4 \% \text {, cumulative } & \$ 5,000 \\\hline 1,000 \text { shares authorized, } 100 \text { shares outstanding } & \\\hline \text { Common stock, } \$ 0.01 \text { par } & 120\\\hline 1,000,000 \text { shares authorized, } 12,000 \text { shares outstanding } & \\\hline \text { Paid-in capital in exces of par } & 359,600 \\\hline \text { Retained earnings } & 153,280 \\\hline \text { Total stockholders' equity } & \$ 518,000\\\hline\end{array}$
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Assume there are no dividends in arrears. What is the book value per share of preferred stock?

• A) $50.00 per share
• B) $42.75 per share
• C) $52.00 per share
• D) $41.00 per share

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Definitions:

Prevalence

The total number of cases of a disease that exist in a particular population at a specific time.

False-Positive Diagnosis

An erroneous identification where a test incorrectly indicates the presence of a condition that is actually absent.

Diagnostic Procedures

Medical tests and evaluations performed to identify the presence of a disease or determine its severity in a patient.

Specificity

The ability of a test to correctly identify those without the disease (true negative rate).